Oil Consumption To Remain Flat in 2013

(Newsroom America) -- Oil consumption will remain relatively flat in 2013 due to decreased demand brought on by a weakened global economy, analysts said Friday.

The International Energy Agency revised its earlier forecasts, saying consistently high prices and a resumption of nuclear power production in Japan would contribute to the lighter use.

The IEA raised its estimate of global oil demand growth for this year to 900,000 barrels per day (bpd) from around 800,000 forecast last month, but said demand would increase by about 800,000 bpd next year, down from an earlier forecast of 1 million bpd.

"A relatively subdued global oil demand forecast persists for both 2012 and 2013, resulting from the weak economic backdrop," said the report, as global demand for oil rose just 1 percent with estimated output for 2012 averaging 89.6 million barrels per day (mb/d) and rising to a meager 90.5 mb/d average in 2013.

The report estimated global economic growth to be about 3.3 percent this year, rising to 3.6 percent next year.

"Strong growth in Asia and Oceania, caused by post tsunami additions to Japan and the robust expansion that continues to be seen in Korea, balanced out modest declines elsewhere," said the report.

"Subdued demand conditions persist for OECD Americas — the U.S., Canada, Mexico and Chile — suppressed by a combination of stuttering economic growth, relatively high oil prices and continued efficiency gains…The oil demand outlook remains relatively bleak in Europe, reflecting the ailing state of the economic backdrop there."

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